Despite the government’s postponement of elections for the Constituent Assembly that had been scheduled for Nov. 22, 2007, Nepal witnessed many historic political changes during the year. With the promulgation of an interim constitution on January 15, Nepal turned from a Hindu kingdom into a secular state, with the role of the monarchy suspended. Once elected and seated, the Constituent Assembly would have the right to determine the future status of the monarchy. Property acquired by King Gyanendra Bir Bikram Shah Dev while in power was nationalized, and Prime Minister Girija Prasad Koirala was named interim head of the state.

With the signing of a comprehensive peace accord between the government and Maoist rebels in November 2006, Nepal’s 11-year-long Maoist insurgency had come to an end. In January the United Nations Mission in Nepal (UNMIN) was established. Its mandate was to assist in the conduct of free and fair elections for the Constituent Assembly, to support the peace process, and to monitor both Maoist and Nepal Army soldiers and their weapons. UNMIN was originally established for 12 months, but the government later agreed to extend its tenure for another 6 months. Although the Maoists joined the interim coalition government upon its formation in April, they left in September after their demands for the monarchy to be immediately abolished were refused. In December, however, the legislature agreed to the demands and voted to end the monarchy, and the Maoists rejoined the government.

Former U.S. president Jimmy Carter visited Nepal in June and November to urge political leaders to hold the elections. Prime Minister Koirala reportedly told Carter that he was committed to holding elections by April 2008.